Discuss topics such as: Turn off more accessible mode. Turn on more accessible mode. Find most of the facts from government statistics and trade organisations. Terms and conditions Disclaimer. The mission, and the company’s long and short term objectives in terms of business growth and development, as well possible exit strategies for example: Financial statements and projections.
Financial statements and projections. Although a guide to writing a business plan is being made available here, circumstances vary considerably and you will need to tailor your business plan depending on the type of business — technology, manufacturing, service or retail. The summary stands alone and should not refer to other parts of your document. The executive summary is the MOST vital part of the business plan — it has to sell your strategy for success to the investor. Find most of the facts from government statistics and trade organisations.
Describe production processes and capacity, identifying any existing constraints and possible problem areas; Include a detailed analysis of the process of installing and commissioning any new technologies and production processes; Include information on quality assurance systems and procedures, and certification; Details of suppliers and sub-contractors, and any contractual arrangements governing the supply of key inputs.
Writing a business plan
Although a guide to writing a business plan is being made available here, circumstances vary considerably and you will need to tailor your business plan depending on the type of business — technology, manufacturing, service or retail. Market analysis Describe the existing market and its potential for growth; Include a detailed analysis of the size and maturity of the market, trends and seasonality exhibited by the market, and the business’s current and expected market share together with an analysis of the time, resources and actions required to achieve this desired market share; List existing and potential customers, supported by letters of intent, orders on hand, contracts, where applicable; Include a detailed analysis of competitors, the price and quality of their products, service and delivery, and their expected reaction to your activities; Highlight and discuss your competitive advantage.
If the business is a franchise, include what is covered in the management package the franchisor provides in this section. The executive summary is the MOST vital part of the business plan — it has to sell your strategy for success to the investor.
Therefore, although it is at the beginning of the document, it is usually written last to capture the essence of the plan. Industry analysis Summarise the industry in which you will compete.
The following supporting documentation, inter alia, should be included where applicable: The summary stands alone and should not refer to other parts of your document. Every business plan should comprise the following sections: Summarise the industry in which you will compete. Appendices and supporting documentation. Find most of the facts from government statistics and trade organisations. The product or service Describe the product or service: Turn off more accessible mode.
Newspaper clippings, promotional literature, product brochures, market research, trade and industry publications; Partnership, association or shareholders’ agreements; Offers to purchase, purchase and sale agreements; Contracts, orders, letters of intent; Memoranda of understanding, lease, franchise, agency or distribution agreements; Documentation relating to licences, copyrights, trademarks and patents; Quotations or pro-forma invoices for capital items to be purchased; Detailed personal balance sheets of the entrepreneurs; Copies of identity documents and marriage certificates of the entrepreneurs; Schedules of life assurance and endowment policies of the entrepreneurs; Copies of company or close corporation certificates and registration documents; Drawings, work flow charts, plans, factory layouts, maps, etc.
Writing a business plan
Formulate and motivate your capital requirements. Current trends and developments in dbza industry; Large and important players in the industry; How the industry is segmented; Problems the industry might be experiencing; National or global events influencing the industry; National and global growth forecasts; How legislation affects the industry for example, how the law limiting smoking in a restaurant affects the industry. Discuss definite and possible strengths, weaknesses, opportunities and threats; Give an honest assessment of the risks faced by the business, entrepreneurs and investors in relation to the potential for growth, profitability, and capital appreciation; Discuss strategies that can be implemented to address the risk factors highlighted.
Terms and conditions Disclaimer. But, the basics remain the same. Elaborate on the business’s past achievements and strengths, past problems and weaknesses, and critical success factors.
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Describe the location, premises and, where applicable, production facilities. Historical financial performance as shown by at least the last three sets of audited annual financial statements and up to date management accounts comprising income statements monthly and year-to-datebalance sheets, and debtors and creditors age analysis; Costing methodology employed, or to be employed, and detailed costings giving a full analysis of cost of sales; Pricing policies giving a full analysis of pplan and actual mark-up and gross profit percentages; Rebates, discount olan and terms offered to and business from customers and suppliers respectively; Break-even and sensitivity analysis; Details of overdraft and factoring facilities bank, limit, security and interest rate and medium and long term loans; Ensure that your financial projections agree with any other statements in the business plan for example, costs involved in your proposed marketing strategy.
Legal and regulatory environment.
A cover or title page. Provide monthly projected figures for the first and second year, quarterly figures for years three and four and annual projections thereafter. Information on the background and history of the business; Indicate the business form proprietorship, close corporation, company ; Is it a new business, take over, expansion, franchise?
The management structure of the business Show company ownership structure, business units and subsidiaries where applicable; Attach an organisation chart showing the functions and responsibilities of directors, key management and staff; Formulate remuneration, incentives, share options, and conditions of employment of key management and directors; Analyse of any deficiencies in management and how these positions are to be filled; Comment on current and future employment levels, labour relations and union membership; Include details of systems to be implemented: For help with the detail of the business plan, such as financial statements and your marketing plan, visit the SME Toolkit South Africa on smetoolkit.